A Safaricom customer care centre on Kimathi Street, Nairobi . FILE PHOTO | NMG
Senior Safaricom managers were awarded 15.5 million shares with a
current market value of Sh426 million for free in the year ended March
as compensation for their past performance.
The
employees had cashed out 15.1 million units of stock worth Sh415 million
the year before, with the company’s cumulative spending on the
share-based compensation scheme standing at more than Sh3 billion.
The
Nairobi Securities Exchange-listed firm buys its own shares in the open
market and allocates them to specific employees who eventually take
ownership three years later when they are free to sell the stocks or
continue holding them in their personal accounts.
“Additionally,
15.5 million shares historically valued at Sh347.3 million … vested and
were exercised by eligible staff,” Safaricom says in its latest annual
report.
The free shares and Safaricom’s long-term stock
price rally has made the company’s share-based compensation one of the
most lucrative among NSE-listed firms.
In the review period, the company bought an additional 9.24
million shares at a cost of Sh250 million, with the stocks to be
distributed to the qualifying individuals after three years.
The
company, through a trust, currently holds 21.83 million shares acquired
at a cost of Sh570 million. The shares now have a market value of Sh600
million based on the telco’s stock price of Sh27.5.
Safaricom
has focused on giving high-scoring managers shares at no cost after
closing a separate scheme where a more diverse group of employees were
offered an opportunity to buy shares at a fixed price of Sh5.4 each.
Unlike other employee share ownership plans (Esops), Safaricom’s has not
diluted investors since the stocks are bought from the existing pool in
the open market.
No comments :
Post a Comment